Mr. Frazer Bourchier reports

MANDALAY RESOURCES CORPORATION ANNOUNCES STRONG PRODUCTION RESULTS AND GROWING CASH BALANCE FOR FIRST QUARTER 2024

Mandalay Resources Corp. has released strong first quarter production results marked by a notable increase in cash balance. All currency references in this press release are in U.S. dollars except as otherwise indicated.

First quarter highlights:

• Mandalay's quarter-end cash balance was $47.1-million, a significant increase of $20.2-million as compared with year-end 2023;
• Consolidated gold equivalent production of 24,936 ounces:
  • Costerfield production increased to 14,566 gold equivalent ounces, 32 per cent higher than Q1 2023;
  • Bjorkdal production increased to 10,370 gold ounces, 16 per cent higher than Q1 2023;
• Consolidated gold equivalent sold was 25,277 ounces.

Frazer Bourchier, president and chief executive officer, commented: "We are pleased to report Mandalay's continued operational success in the latest quarter, achieving a solid production result of nearly 25,000 gold equivalent ounces across both operations. This achievement positions the company on a stable trajectory towards meeting our annual production target of 90,000 to 100,000 gold equivalent ounces. Of significant note, Mandalay bolstered its cash reserves substantially, increasing its cash balance by over $20-million in the quarter, culminating in a closing quarter cash balance of $47-million."

Ryan Austerberry, chief operating officer, commented: "At Costerfield, we produced 14,566 gold equivalent ounces during Q1 2024, with an average processed head grade of 12.4 [grams per tonne] and 2.2 per cent for gold and antimony, respectively. This is despite encountering challenges impacting operations due to two distinct adverse rain weather events, leading to temporary site access restrictions and power disruptions in January, 2024. We anticipate maintaining similar metal grades as we mine comparable sections within our high-grade Youle and Shepherd deposits in the upcoming quarter.

"At Bjorkdal, we achieved gold production of 10,370 gold ounces. Throughout the quarter, underground mining rates remained healthy and consistent notwithstanding some geotechnical challenges causing adjustments to the mine sequencing schedule. While the processed gold grades were lower than anticipated in the quarter, this large gold system with sufficient underground capital development provides us flexibility to pivot as required when these issues might occur. Site continues to explore opportunities to even further improve planning flexibility, enabling better management of potential impacts from future sequencing changes. One notable achievement we are very pleased with was the steady ramp-up in mill throughput rates during the quarter. The commissioning of the mill expansion conversion project is progressing as scheduled and is expected to be completed in [second quarter] 2024. This step change will increase the plant's feed to a run rate of 1.45 million tonnes per annum."

Mr. Bourchier concluded, "With this continued solid foundation of two great assets in excellent jurisdictions, coupled with the ongoing execution of Mandalay's new corporate strategy, we are poised to capitalize on future opportunities and look towards achieving our vision of building a premier mid-tier essential metal producer over the next few years."

Production for the quarter ended March 31, 2024:

• The company produced a total of 22,346 ounces of gold and 404 tonnes of antimony, representing a total of 24,936 ounces of gold equivalent, versus 16,337 ounces of gold and 544 tonnes of antimony in the first quarter of 2023, representing a total of 19,986 ounces of gold equivalent.
• Production at Bjorkdal was 10,370 ounces of gold versus 8,969 ounces of gold in the first quarter of 2023.
• Production at Costerfield was 11,976 ounces of gold and 404 tonnes of antimony versus 7,368 ounces gold and 544 tonnes antimony in the first quarter of 2023.

Sales for the quarter ended March 31, 2024:

• The company sold a total of 23,187 ounces of gold and 326 tonnes of antimony, representing a total of 25,277 ounces of gold equivalent, versus 18,020 ounces of gold and 559 tonnes of antimony in the first quarter of 2023, representing a total of 21,769 ounces of gold equivalent.
• Bjorkdal sold 10,761 ounces of gold versus 9,521 ounces of gold in the first quarter of 2023.
• Costerfield sold 12,426 ounces of gold and 326 tonnes of antimony versus 8,499 ounces of gold and 559 tonnes of antimony in the first quarter of 2023.

About Mandalay Resources Corp.

Mandalay is a Canadian-based natural resource company with producing assets in Australia (Costerfield gold-antimony mine) and Sweden (Bjorkdal gold mine). The company is focused on increasing its production and reducing costs to generate significant positive cash flow. Mandalay is committed to operating safely and in an environmentally responsible manner, while developing a high level of community and employee engagement.

Mandalay's mission is to create shareholder value through the profitable operation and continue the regional exploration program, at both its Costerfield and Bjorkdal mines. Currently, the company's main objectives are to continue mining the high-grade Youle vein at Costerfield, ramping up production from deeper Shepherd veins, both of which will continue to supply high-quality ore to the processing plant, and to extend mineral reserves. At Bjorkdal, the company will continue to produce from the Aurora zone and other higher-grade areas in the coming years to maximize profit margins from the mine.

We seek Safe Harbor.